Cost Segregation Could Benefit You

James Lamont opens his article in The North Bay Business Journal by describing a situation familiar to many within the cost segregation industry. Commercial Building owners lose interest before the conversation even gets started. Admittedly, upon first introduction cost segregation does not sound very exciting. “Costs? Studies? Isn’t this something my accountant already takes care of so I don’t have to?” This is a reaction and initial thought process that is unfortunately all too common.

Lamont has developed a clever pick and roll for this roadblock, using something most people find interesting: money. “What if I told you that you could recoup up to $100,000 for every $1 million of your building’s value?” Through this method of introduction, Lamont is able to grab the attention using a real and concrete example that commercial property owners will understand. For those who have not yet investigated the potential benefits for their property, it raises the question “What are the reasons I am avoiding a cost segregation study?”

Later in the article Lamont also points out another potential roadblock for commercial property owners. What is the most effective way to present a relatively unknown tax strategy in a way that eliminates worry of it being a risky loophole? He has several great suggestions such as referencing Internal Revenue code and court rulings that established cost segregation studies as a legitimate tax strategy.

The takeaway from this article is that cost segregation studies, when framed correctly to a potential customer, are undeniably legitimate and exciting because of the unrealized financial gains waiting to be uncovered.